Alcohol & Marijuana Control Office

Marijuana Regulations Public Comments Questions and Answers

Questions & Answers on Draft Set #3

QUESTIONS RECEIVED REGARDING SET #3 (ARTICLES 4,5,6,8 &9) OF PROPOSED MARIJUANA REGULATIONS WITH ANSWERS

QUESTIONS ABOUT CULTIVATION FACILITIES RULES (ARTICLE 4):

1. If the cultivation facility licensee lives in a separate building but still in the same lot as the cultivation facility would that be in violation of regulation?

A: Nothing in Article 4 addresses where a person holding a cultivation facility license resides.

2. Why can’t a small limited cultivator hold any other license? It is conceivable to see a small limited cultivator wanting to hold a manufacturing license. What is the issue?

A: The small cultivation facility license rules were developed for small growers who only want to grow and who are willing to use a broker to complete the business pieces of cultivation licensing regulations. Stacking any other type of license on a limited cultivation license is inconsistent with that model.

3. 306.420(c)(2) requires a broker to submit a form of agreement with a limited cultivation facility before the broker has even obtained a broker license. So, a hopeful broker should make an illegal agreement to do business before they have obtained licensing?

A: None of the regulations are intended to require illegal agreements.

4. 306.435(c)(2) requires that the public cannot detect an odor outside of the facility. Within how many feet? What if the wind blows?

A: Enforcement of regulatory provisions such as this one will be fact-dependent. The board will be the ultimate arbiter of whether an odor issue must be addressed by a licensee.

5. Please further define “full video surveillance” as referenced in 306.435(d).

A: Please read 306.725 which describes the video surveillance required by 306.345(d), and which is referenced therein.

6. 306.440 What Tracking System will be prescribed?

A: The tracking system is generally described in 306.760. No specific software or vendor has yet been identified.

7. 306.430  Many operations will be diversified where some of the employees may be janitors or housekeeping etc., why on earth would we require these folks to be permitted?

A: All employees of any marijuana establishment are required to hold marijuana handler permits per 306.715. The requirement of a marijuana handler permit was discussed by the board at its meeting reviewing that section of the regulations with public comments thereon.

8. What is the intent or purpose to have rigid walls on a greenhouse/high tunnel?

A: To ensure control over and security of the marijuana crop.

9. In 410(a)(1) when you say "under cultivation".. does this also include plants being propagated?, like clones.. etc. as part of a square footage calculation?

A: Please review the definition of “square feet under cultivation” in Article 9.

10. In dealing with the Limited Marijuana Cultivation Facility License; a dedicated area of 500'sq is required. Can 2 separate permit holders maintain 2 separate dedicated areas of 500'sq in one property?

A: Nothing in Article 4 prohibits the concept of two separate licensees maintaining two separate licensed premises being co-located on one larger piece property, so long as each licensee has the title, lease or other documentation showing the licensee’s right to possession to that licensee’s licensed premises as required in Article 1 (306.020(b)(9)).

QUESTIONS ABOUT PRODUCTION FACILITIES RULES (ARTICLE 5):

1. Why is the THC cap for concentrates set at 76% THC?

2. Why is THC being limited to only 76% in 306.545(c)?

3. In 3 AAC 306.545 We request clarification on how the board established the 76 percent THC potency cap for products and why that number was chosen in order to make an appropriate and accurate public comment.

ANSWER to 1 and 2 above: Please read AS 4.16.110, “Sale of certain alcoholic beverages prohibited.” The determination of the legislature in Title 4 that alcoholic beverages above 76% alcohol by volume are too strong to be safely regulated is taken as instructive in the draft regulations.

4. Extraction equipment is very low pressure, why the 600lb/sq, inch requirement in 306.550(c)(1)?

A: This language was taken from other states’ rules regarding extraction equipment. Staff is in the process of researching this issue for the board.

5. Another concern relates to home-based hash oil extraction which uses butane or other potentially explosive methods. The regulations appear to address commercial hash oil extraction. Will the regulations address personal hash oil extraction methods or is it anticipated that additional state legislation will be necessary to address personal hash oil extraction in order to protect the public health, safety, and welfare?

A: The regulations pertain only to rules around commercial extraction in licensed marijuana product manufacturing facilities.

6. 306.565(b) Who is to define whether a cartoon character is targeting someone under the age of 21? Who defines what the difference between advertising to an adult's inner child and a child is?

A: Enforcement of regulatory provisions such as this one will be fact-dependent. The board will be the ultimate arbiter of whether an illustration appears to be targeting someone under the age of 21.

QUESTIONS ABOUT TESTING FACILITIES RULES (ARTICLE 6):

1. Marijuana testing facilities would each need to employ a “scientific director” who has both academic and post-degree laboratory experience in chemical and biological sciences. Will the State require a 4 year BS degree to operate a certified laboratory?

A: The proposed regulations require a scientific director in order to be granted a testing facility license. The requirements for the background of the scientific director are outlined in the regulation referenced in the question (306. 630)

2. 306.605(a) does not allow any person to provide testing or results without a license. What about personal grow testing with personal testing equipment?

A: The requirement for a marijuana testing facility license applies only to a person (including individual, partnership or corporation) “offering any service [testing marijuana or marijuana products] to any other person including a marijuana establishment or any member of the public, whether for compensation or not, as an independent or third-party testing facility” 306.600(a). This would not appear to apply in the scenario described in the question.

QUESTIONS ABOUT PUBLIC CONSUMPTION OF MARIJUANA:

1. Where will the tourists be able to consume cannabis? How about in their hotels or bed and breakfasts? Will these businesses be allowed to provide designated areas?

A: AS 17.38.040 prohibits the consumption of marijuana in public places. “In public” was defined by the board in a regulation that was made permanent this year and includes any place to which the public or a substantial portion of the public has access. The proposed regulation in Article 9 prohibits the creation of clubs that would invite the public in to consume marijuana but charge a membership fee, admission fee or cover charge for admission. AS 17.38 does not provide legal authority for the Marijuana Control Board to create a license type permitting consumption of marijuana in a place which is open to the public.

GENERAL QUESTIONS:

1. Does property used for cultivation have to be zoned for commercial or can it be residential?

A: Zoning is the province of local governments and is not addressed in this set of regulations.

2. Does the permit holder need to own the property or can it be leased?

A: The question of a licensee’s right to possession of the property on which its licensed premises are located is in Article 1, 306.020(b)(9).

3. How many permits can one person hold?

A: The answer to this question depends on the type of licenses being discussed. Generally, the regulations permit “stacking” of licenses other than testing facility licenses and limited cultivation facility licenses.

QUESTIONS NOT COVERED IN THE PROPOSED REGULATIONS IN SET #3 (not answered)

1. What is state of Alaska doing to ensure Alaskans are given the opportunity to purchase marijuana products in rural communities?

2. Will an unorganized borough be allowed to regulate marijuana and if so how many permits right be given to an island such as Prince of Wales.

3. What will the marijuana business look like when it is first implemented? Will licenses be staggered given that it will be necessary to cultivate marijuana prior to manufacturing or selling it? Where will the initial 8 inch plants referenced in 3 AAC 306.440 come from?

4. In order to reduce the burden on state officials why not allow monthly statements and payment of excise tax quarterly, similar to alcohol and tobacco business tax collection that currently takes place?

5. I’m a land owner with 7 acre wising to operate a 2500 sq ft grow am I going to be able to do it??

QUESTIONS THAT ARE ACTUALLY COMMENTS OR RHETORICAL QUESTIONS THAT CANNOT BE ANSWERED BY THE PROPOSED REGULATIONS IN SET #3 (not answered)

1. Is it necessary for every potential business owner to submit the growing medium? Fertilizers and chemicals? Every batch will be tested, they will either pass or fail testing and inspection. Irrigation and waste water system? Waste disposal arrangements? Odor control? These are things we will all need to comply with, why must we decide and tell the board every single detail? The testing procedure and protocols?

2. 306.520(3) is requiring once again a massive amount of trivial information. Why is this so detailed?

3. What other industry applying for a license or permit in this state requires an operating/business plan be submitted? This is not the function of this board to determine whether or not an applicant has a operating/business plan that will be evaluated based on what criteria?

4. 306.435(d) What about the farmer who has 20 acres? How on earth would anyone expect to have every single foot under surveillance?

5. We fought long and hard to secure clean indoor air; including a fight to the Alaska Supreme Court to decide that “private” clubs are public places. But the state is considering rolling back that decision, to accommodate marijuana entrepreneurs who want to make a lot of money off pot-smoking tourists. Is this good governance? Compromising hard fought-for laws to accommodate capitalism at the expense of the public health and safety in our community?

6. I did NOT vote to create a marijuana tourism industry in Alaska. I know that the marijuana entrepreneurs stand to make a lot of money, but just like tobacco and alcohol, who is going to be stuck paying for the public health impact; financially and emotionally?